In the matter of Kinglet Finlease and Sec.Ltd

BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI

Appeal No.88/2002

In the matter of: Kinglet Finlease & Securities Ltd., Appellant Vs. Securities and Exchange Board of India Respondent Appearance: Shri K. S. Jhaveri, Advocate For Appellant Shri Ananta Barua, Jt. Legal Adviser, SEBI Shri Joby Mathew Legal Officer, SEBI For Respondent

ORDER

The present appeal is directed against the Respondent’s order dated 22.8.2002. By the said order, the registration certificate granted to the Appellant to act as a stockbroker on the National Stock Exchange of India Ltd., was suspended for a period of one year with effect from 6.9.2002.

The background in which the impugned order was issued has been detailed in the order itself. The factual position has not been disputed in the appeal. The factual position stated in the order is considered relevant for the purpose of deciding the appeal. The text of the order extracted below provides the factual position and the reasons for the order:

“1. Investigations were conducted by SEBI into the alleged market manipulations in the scrip of Kamal Overseas Ltd., (KOL). Investigations brought out that the shares of Kamal Overseas Ltd., were listed for trading on NSE w.e.f. 9^th October 1996., The trading activity in the scrip was very thin and sporadic, so much so that, only 1200 shares of the company were traded between 9^th October 1996 and 15^th April 1997. Trades took place only on 6 days during this period and the share price moved in a narrow range of Rs.75 to Rs.81. It was observed that suddenly from 22^nd April, 1997 onwards (which was the last day of St.No.16/1997), trading activity picked up in the scrip and a volume of 10,200 shares were recorded and the price of the scrip moved upto Rs.82/-. The next two settlements viz. No.17/1998 (23-29 April 1997) and No.18/1997 (30^th April – 6^th May 1997) saw feverish trading activity in the scrip with a trading volume of 7,53,600 shares and 11,97,100 shares respectively.